Ask The Experts: Retirement

By Reg Jones

Reduction in force and retirement

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Q. I will be 58 next year, when we are supposed to be RIF with the Postal Service if we have not found another EAS position. At that time I will have 24½ years in and be 58. I understand I will be eligible for DSR.

How is the amount calculated? Is it the same as the FERS amount, is it permanent and can I still receive the FERS supplement? Can I receive DSR and FERS, or just the DSR or FERS? I don’t want to retire but am trying to see how I will be financially if I am part of an RIF. Also, does this affect my Social Security?

A. You can’t calculate a DSR. It just means discontinued service retirement. If you are separated either voluntarily or involuntarily and meet the age and service requirements, which you do, you will be eligible for discontinued service retirement. Your annuity will be computed using the standard FERS formula; and, because you have already reached your minimum retirement age, you will immediately be entitled to the special retirement supplement, which will be based solely on your actual years of FERS service. When you are eligible for a Social Security benefit, it will be based on all your years of Social Security-covered employment, not just those under FERS.

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